HSBC leaves door open for bigger cost cuts, Asia focus as revamp spurs leadership shake-up

South China Morning Post10-23

That is music to investors'ears. The shares have risen 0.4 per cent to HK$68.80 in Hong Kong since the announcement; in London, they have advanced 1.1 per cent to £6.8. Do you have questions about the...

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The shares have risen 0.4 per cent to HK$68.80 in Hong Kong since the announcement; in London, they have advanced 1.1 per cent to £6.8.\nDo you have questions about the...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-leaves-door-open-bigger-093000454.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HSBC leaves door open for bigger cost cuts, Asia focus as revamp spurs leadership shake-up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHSBC leaves door open for bigger cost cuts, Asia focus as revamp spurs leadership shake-up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-23 17:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/hsbc-leaves-door-open-bigger-093000454.html><strong>South China Morning Post</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>That is music to investors'ears. The shares have risen 0.4 per cent to HK$68.80 in Hong Kong since the announcement; in London, they have advanced 1.1 per cent to £6.8.\nDo you have questions about the...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-leaves-door-open-bigger-093000454.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2237443549.SGD","symbol_name":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/hsbc-leaves-door-open-bigger-093000454.html","article_id":"2477530742","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477530742","pubTimestamp":1729675800,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"That is music to investors'ears. The shares have risen 0.4 per cent to HK$68.80 in Hong Kong since the announcement; in London, they have advanced 1.1 per cent to 6.8.Do you have questions about the biggest topics and trends from around the world?Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.The shake-up could be a sign of cutting layers of \"unproductive reporting lines to save costs,\" Gurpreet Singh Sahi and Wing Huang, analysts at Goldman Sachs, said in a report on October 22. It is likely to allow the group to channel future investment and capital towards businesses or areas with higher returns, it added.In particular, the productive wealth management business is likely to warrant more investments in resources to pump up growth, analysts said.The newly formed corporate and investment banking  unit has the biggest scope for more efficiency improvements and balance shee","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","BK4585":"ETF&股票定投概念","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU0106831901.USD":"贝莱德世界金融基金A2","SCMP":"Sucampo Pharmaceuticals","BK4550":"红杉资本持仓","BK4588":"碎股","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","BK4552":"Archegos爆仓风波概念","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","BK4207":"综合性银行","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","CIB":"哥伦比亚银行","BK4504":"桥水持仓","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","BK4127":"投资银行业与经纪业","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","HSBC":"汇丰","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","BK4521":"英国银行股","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD"},"translate_title":"汇丰银行为进一步削减成本敞开大门，重组刺激领导层改组，重点关注亚洲","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SCMP":1,"HSBC":1,"CIB":1},"content_text":"That is music to investors'ears. The shares have risen 0.4 per cent to HK$68.80 in Hong Kong since the announcement; in London, they have advanced 1.1 per cent to £6.8.\nDo you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.\nThe shake-up could be a sign of cutting layers of \"unproductive reporting lines to save costs,\" Gurpreet Singh Sahi and Wing Huang, analysts at Goldman Sachs, said in a report on October 22. It is likely to allow the group to channel future investment and capital towards businesses or areas with higher returns, it added.\nIn particular, the productive wealth management business is likely to warrant more investments in resources to pump up growth, analysts said.\n\nCEO Georges Elhedery is wielding the axe to trim costs, less than two months into the top job. Photo: Handout alt=CEO Georges Elhedery is wielding the axe to trim costs, less than two months into the top job. Photo: Handout>\nThe newly formed corporate and investment banking (CIB) unit has the biggest scope for more efficiency improvements and balance sheet changes, Goldman added, given its weakest income-to-risk-weighted capital at the interim stage this year.\nIn its new set-up from January 1, HSBC will operate in four key businesses: Hong Kong, UK, CIB and global wealth and premier banking. It will split the geographical coverage into Eastern and Western markets, and \"optimise\" senior management roles to run a tighter ship, it said in a filing on Tuesday.\nColin Bell, the CEO of HSBC Bank plc and Europe, will be leaving on December 31 after eight years with the banking group, according to an internal memo seen by the Post. His function was absorbed by Michael Roberts, the CEO of the CIB unit in Western markets.\nStephen Moss, the CEO of Middle East and North Africa, will end his 32 years with HSBC on December 31. That region will be folded into Asia-Pacific under the care of co-CEOs David Liao and Surendra Rosha. Steve John, the group chief communications and brand officer, will also step down.\nThe shake-up is likely to allow the group to channel future investment and capital towards higher returning business, Goldman said. In particular, the productive wealth management business is likely to warrant more investments in resources to pump up growth.\nGoldman maintained its buy rating on HSBC, setting a 12-month price target of HK$82. That implies at 19 per cent upside from current levels.\nWill this revamp force HSBC to exit from some of its underperforming markets like Mexico?, analysts at Citigroup wondered. The bank has recently sold its businesses in France and Canada to focus on its \"home markets\", rewarding shareholders with bigger dividends with cash from those sales.\nHSBC has more bank branches in Mexico than in the UK and Hong Kong combined, Citigroup said, but its market share has dwindled to about 7 to 10 per cent in terms of deposits, credit cards and mortgages. HSBC abandoned less profitable markets, such as Argentina in 2023, Citigroup said.\nThe simplification of HSBC Holdings PLC's organisational structure should support strategic execution and cost efficiency, according to Fitch Ratings. It does not expect this to lead to any material changes to its legal entity structure, thus is unlikely to hurt it's A/Stable rating.\nThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved. \nCopyright (c) 2024. South China Morning Post Publishers Ltd. 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